New Delhi: Tata Steel and state-run MMTC on Thursday signed an agreement to set up a joint venture to acquire, develop, operate mines and process minerals and metals.

Tata Steel would hold 74% stake in the proposed JV, while the remaining 26% will be held by MMTC, a statement said here.

“Steel production in India is projected to grow to over 120 million tonnes by the year 2015. To cater to the raw materials requirement of increasing steel demand and other mineral based industries, MMTC and Tata Steel have agreed to cooperate with each other and are executing this agreement for setting up a JV for the above purpose, it added.

Tata Steel is one of the largest producers of iron and steel globally and has vast experience of exploration, modelling, designing and operation of both underground and open cast mines producing various minerals.

Public sector company MMTC is engaged in international trading of minerals, metals, precious metals, fertilizers, coal and hydrocarbons and agro commodities.

MMTC has also set up a 1.1 million tonne integrated steel plant in Orissa and is setting up iron ore loading facilities at ports of Ennore and Paradip.

The agreement was signed between MMTC chairman and managing director Sanjiv Batra and Tata Steel’s managing director HM Nerurkar here.